Asian PET players report tight supplies from Thailand

Players across Asia reported that PET supplies from Thailand are tight as a local producer in the country prefers to reserve more allocation to export markets, particularly to Japan and the US. As a result of the producer’s preference, several players in Southeast Asia as well as Thailand’s local market have received higher offer levels.

A source from the Thai producer commented, “Our local offers increased by THB1000/ton ($30/ton) this week. Demand is stable in the country while we receive more orders from Japan and other countries. Therefore, our export allocation is growing up.” Meanwhile, the producer’s local offers are standing at THB37,000/ton ($1122/ton) on FD Thailand, cash basis while export offers are reported at $1100/ton on FOB Thailand, cash basis.

A Vietnamese trader reported offering Thai PET at $1130/ton CIF and noted, “Our current offer is high as there has been a shortage of PET from Thailand. This is because Thai PET sellers are exporting to the Japanese market primarily.”

A source from a Taiwanese producer, whose offers stand at $1080/ton FOB Taiwan, cash, commented, “We have raised our export offers again and our target markets are mainly the Middle East and Japan so far. Meanwhile, buyers in the US are mostly sourcing from a Thai producer as there is no anti-dumping investigation for Thai origin. We think PET prices are likely to remain firm in the days ahead as strong crude oil prices seem to have reflected on PX and PTA prices.”

Another Vietnamese trader who received offers for Thai PET at $1130/ton CIF commented, “PET prices are firmer this week, especially Thai offers while Chinese cargoes are offering the most competitive levels. We are planning to make purchases next week in order to see whether this uptrend is sustainable. Meanwhile, demand towards our end-products is better given the approaching Chinese New Year.”

Meanwhile, a converter operating in Thailand’s local market noted, “PET supplies in Thailand are still tight as a local producer is exporting more allocation to the overseas markets while demand is slightly better.”